MD_DA431                                                         
DA                                                               
MD DA431 BUTTER - CENTRAL                             

MADISON, WI.  February 3, 2010 (REPORT 05)
                       
CENTRAL BUTTER:

Following a stretch of over two weeks of weak CME cash butter 
prices, trading activity at mid week increased the price by 3 
1/2 cents to settle at $1.3450.  This price compares to 
$1.3800 last week, $1.1000 last year at this time, and $1.2225 
in early February 2008.  Churning schedules have been quite 
active over the past week as Central butter producers process 
cream volumes from regular sources along with outside cream 
offerings.  Cream buyers remain cautious with their spot cream 
purchases.  Current butter demand has not been overly 
aggressive as many buyers were hesitant to procure in a down 
market.  Suppliers now state that it will be interesting to 
see how buyers react to the midweek increase.  Stocks of 
butter are readily available for current needs with surplus 
production clearing to inventory.   Current, domestic FOB 
butter prices are below international butter quotes out of 
Europe and Oceania, thus potentially, international buyers 
might be in the U.S. market looking for butter stocks for the 
near term.  The Oceania milk production season has not 
developed as positively as projected, while European milk 
output is just starting to increase.  Spot bulk butter prices 
range from 2 - 4 cents over various pricing bases and averages 
per pound.

1500C steve Schneeberger  (608)250-3204